Recently, as part of our role within the Food and Drink Exporters Association (FDEA, UK) as in market specialist for Australia/New Zealand and South Africa our CEO Mark Field, lead the panel discussion at IFE 2025 (International Food and Drink Expo) at Excel, through the Export Hub helping businesses understand some of the complexities and tools to consider when building an export strategy. We have captured Mark’s key insights and comments in our latest blog which we hope you will find informative and an indication on how the team at Prof Consulting are helping clients target critical export growth today.
Recognising the energy or determination UK based Food and Drink businesses consistently demonstrate when looking at export markets we are regularly asked the question, where next and how can our business benefit from the changing global trends?
The UK with its concentrated population and ease of domestic distribution networks has an advantage in that investment in new food processing technology or a new product range can quickly reach a wider audience reducing the period for ROI (Return on Investment), this aligned with the highly competitive nature of the UK retail landscape and the demands of the multi-cultural UK consumer ensures we are early adopters of macro trends driving food innovation or growth. Benefiting from Global trends driving demand in categories such as plant based, high protein, added functionality or health benefits or products that are leading on the sustainability agenda, deliver on premiumisation or responsible sourcing commitments having the ability to reach a wider market quickly.
When deciding where to sell your products it is however vital to understand your target customers journey and where they shop to help identify the optimal retailer or channel and the targeted country for your export success. Ultimately success is about understanding your customer and their shopper journey then identifying where your target audience shop and the size of the prize. Engaging an in-market specialist with “Boots on the ground” will accelerate this process based in their in-depth understanding of the local market, competitive dynamics and retailers’ strengths or strategies. It’s becoming essential to understand your USP (Unique Selling Point) vs the current competition to help the buyer and ultimately the consumer recognise your product offer.
Australia is becoming increasingly important to Food and Drink exporters made more attractive on the back of the latest Free Trade Agreement. With its well-established retail market, 2 major retailers representing over 65% of the grocery market, 4 retailers combined to represent over 80% there is a clear route to market providing access to over 26m people. Global trends tend to be reflected in the market slightly slower than the UK, so the product advantages are clear.
Researching the market is important either directly or through an in-market specialist as Australia represents its own challenges, a country 2.5x the size of Europe, 3 days by rail to traverse from Sydney to Perth and the natural challenges of high temperatures. These challenges require a clear supply chain strategy to manage and can result in localised contract manufacturing to maximise the outcomes.
Understanding the changing global retail landscape is essential to quickly identify the next export market with high potential, success could be executing a branded strategy or as we are seeing increasingly a branded and Private Label strategy, clearly differentiating the products so as not to undervalue your brands but at the same time accessing the large Private Label volumes to drive sourcing and operational efficiencies to strengthen your business. South Africa is one of the markets becoming increasingly attractive to UK businesses as leading retailers such as Woolworths, Checkers, Pick n Pay or Food Lovers Market look to invest in the customer experience, product offer and loyalty programs to win market share.
The International Foods aisle or Foods of the World continues to grow across retail reflecting culturally diversity, this further creates opportunities for UK businesses target export growth, whilst raising the question, where should your product be best located to drive sales, In the main grocery aisle next to your competition or within the International Food aisle as a destination purchase?
With only one opportunity to introduce a new brand into a market sometimes targeting the premium retailers, where you initially sell less units but at a higher price pint ca be more effective than the volume of mainstream retailing where you could enter at ta lower price. Achieve success and popularity with the premium offer resulting in a mainstream listing
In summary, export opportunities are increasing for trusted products and manufacturers with the necessary food safety and ethical accreditations, success is determined by demonstrating a clear understanding of the customer, the competitive landscape, targeting the right retailer and ensuring an effective supply chain to achieve the sales opportunity. Engaging an in-market specialist can accelerate market insights, support your business through capability building and help navigate local compliance or regulatory considerations.
Winning a listing with an overseas retailer is today just the start of the journey, as soon as the products arrive on shelf, your competition are looking to take your place. Ensuring that your supply chain is robust and agile enough to meet the demands of your customer are crucial alongside having in country representation to monitor your business, understand availability challenges, changing strategies from competing brands and build your relationship with the category managers for longer term success.
Are you looking to break into the next export market? Look no further than Prof. Consulting Group! With our team of industry-leading experts and extensive range of services, we’ll help you take your business to the next level.
For more information or to discuss how Prof. Consulting Group can support your business, Contact Us Today.
